Business rates are a form of tax that businesses in the UK have to pay on their property to help fund local services. However, there is a specific type of business rates that often catches the attention of business owners – void business rates. void business rates are rates paid on empty commercial premises. In this article, we will discuss what void business rates are, how they are calculated, and what business owners can do to minimize their impact.
void business rates are essentially rates that businesses have to pay on vacant commercial properties. When a property becomes empty, the business premises no longer generate any income but are still liable for business rates. This can be a significant financial burden for businesses, especially those that may be struggling or going through a period of transition.
The calculation of void business rates is based on the rateable value of the property. The rateable value is determined by the Valuation Office Agency (VOA) and reflects the open market rental value of the property as of a specific date. The rateable value is then multiplied by the current business rates multiplier to determine the annual business rates bill.
It is worth noting that there are certain exemptions and reliefs available for businesses that have empty properties. For example, small business rate relief may apply to properties with a rateable value below a certain threshold. Additionally, properties that are under renovation or undergoing structural changes may be eligible for relief from void business rates.
Business owners should be aware of the implications of void business rates and take steps to mitigate their impact. One way to minimize void business rates is to actively market the property for rent or sale. By finding a tenant or buyer for the property, businesses can avoid paying empty property rates altogether.
Another option for businesses facing void business rates is to consider leasing the property on a short-term basis. By leasing the property to a temporary tenant, businesses can generate some income while they search for a long-term tenant or buyer. This can help offset the cost of void business rates and reduce the financial strain on the business.
Business owners should also be proactive in seeking out any available exemptions or reliefs for empty properties. It is important to stay informed about changes in legislation that may impact void business rates and to work with a professional advisor who can provide guidance on how to navigate the complexities of business rates.
In conclusion, void business rates are a reality that many businesses face when they have empty commercial properties. It is essential for business owners to understand how void business rates are calculated, what exemptions and reliefs are available, and how they can minimize the financial impact of empty property rates. By taking proactive steps and seeking professional advice, businesses can navigate the challenges of void business rates and protect their bottom line.